Maximizing Your Capital Campaign: Making Your Silent Phase Loud

Maximizing Your Capital Campaign: Making Your Silent Phase Loud

Today s Presenters: Tricia Ambler Senior Client Consultant WealthEngine Sally Boucher Director of Research WealthEngine wealthengine.com Page 2

Campaign Workbook Webinar Series Plan Launch Execute Internal Readiness Audit Feasibility Study Case For Support Prepare Your Constituency Quiet Phase Campaign Structure Diversify Funding Sources & Types Solicit Lead Gifts Public Phase Maintaining Momentum Post-campaign Analysis Looking Ahead wealthengine.com Page 3

Agenda Campaign Structure Get the Board on Board Keys to the Campaign Cabinet Leverage Your Networks & Circle of Friends Consider Diversifying Funding Sources and Gift Types Funding Sources Gift Types Using Data To Prioritize Lead Gift Solicitation wealthengine.com Page 4

Campaign Structure Getting the Board on Board

Board Ensures your organization adheres to legal and ethical standards in fundraising Hires your organization s CEO Ensures your CEO has the support needed to move the organization forward wealthengine.com Page 6

Involved Board Leadership Enhancing your organization s visibility within the community Believing in your organization s mission Articulating in your organization s mission, goals and accomplishments within the community wealthengine.com Page 7

Involved Board Leadership Willing to attend board meetings and become involved in the organization Willing to invest in your organization Willing to open doors to their peers Willing to solicit their peers Willing to garner broad based philanthropic support from the community wealthengine.com Page 8

Strategic Planning Cycle SWOT Analysis Formulate Strategy Examine External Strategies Strategic Planning Cycle Propose Mission Propose Goals wealthengine.com Page 9

Governing Board and Capital Campaign Soliciting and obtaining board buy-in Feasibility study Planning committee Balancing act to ensure success wealthengine.com Page 10

Nonprofit Board & Campaign Cabinet Board Board Chair Campaign Cabinet wealthengine.com Page 11

Board and Campaign Cabinet Can or should your board serve as your campaign cabinet? Should there be overlap? Should the board chair serve as a member of the campaign cabinet Guidelines and responsibilities must be established wealthengine.com Page 12

Campaign Cabinet Responsibilities Campaign leadership Recruit steering committee members Attend regular campaign meetings Leadership giving Connections to corporate/foundation contacts Connections to other industry or funding stakeholders important to your campaign Connections to major gift prospects Participate or host cultivation events Secure endorsements wealthengine.com Page 13

Campaign Chair The right campaign chair could help ensure a successful campaign Make a leadership gift Primary spokesperson for the campaign Strong connections to others in their field Participate and host cultivation events wealthengine.com Page 14

Leverage your Network Circle of Friends

Organization Networks Campaign Cabinet Board Volunteers/Staff Community and Corporate Connections wealthengine.com Page 16

Enhancing your Community Outreach Image courtesy of Jason Boley wealthengine.com Page 17

Peer Screening and Wealth Screening Wealth Screenings can help identify industries your constituents are affiliated with Wealth Screenings can help identify potential and capacity Used together can provide more of an objective analysis of prospect base Used together can help build comprehensive ratings Can build consensus within the development office wealthengine.com Page 18

Peer Screenings Why? It will help board and campaign cabinet members become involved in the process It can help get your campaign message out sooner Can help discover new prospects and feed the prospect pipeline in a different way than a wealth screening People really do like to talk about their peers and the giving capacity wealthengine.com Page 19

Peer Screenings Who Should be Involved? Board Members Campaign Cabinet Volunteers Great Cultivation Tool can help gift officers get in the door to make discovery calls Keep in mind it can lead to inflated capacity numbers wealthengine.com Page 20

Peer Screenings What Can it Help you Achieve? It will help cultivate a core group of prospects Will feed the pipeline of prospects Can help qualify ratings from other sources Can help you determine who knows whom Can help you determine inclination wealthengine.com Page 21

Peer Screening Prospect Name Spouse City, State Degree Year School/Program Attended Rating (circle One) John Jones Sally Washington, DC 1980 School of Business $1-$1K $1K-$5K $5K-$10K $10K-$25K $25K-$50K $50K-$100K $100K-$250K $250K-$500K $500K-1M $1M+ Affinity (circle one) Most Likely Somewhat Likely Least Likely Not Likely Comments Sam Shepard Susie New York, NY 1980 School of Business $1-$1K $1K-$5K $5K-$10K $10K-$25K $25K-$50K $50K-$100K $100K-$250K $250K-$500K $500K-1M $1M+ Most Likely Somewhat Likely Least Likely Not Likely wealthengine.com Page 22

Peer Screening Foundations & Corporations Foundation Board Member Name Rating (circle One) Affinity (circle one) Connected to? (Circle One) Comments John Smith $1-$1K $1K-$5K $5K-$10K $10K-$25K $25K-$50K $50K-$100K $100K-$250K $250K-$500K $500K-1M $1M+ Yes No The name of the foundation is not listed The primary focus is to list each board member of the foundations your organization is interested in You could also add top corporation contacts This will help you figure out who your board and campaign cabinet members know in the larger community wealthengine.com Page 23

Diversifying Funding Sources

Six Primary Funding Sources For Nonprofits When planning your campaign Corporations Foundations Individuals Nonprofit Funding Sources Government Fees or Earned Revenue Investment Revenue (Endowments) Make a plan for how each of your current funding sources will be optimized Investigate whether the campaign provides new opportunities to partner with a new funding source Ensure your campaign cabinet or committee structure covers all sources wealthengine.com Page 25

Six Primary Gift Types of Campaign Gifts When planning your campaign Consider what your pledge period will be and establish procedures for collecting them and accounting for uncollected pledges Establish or review procedures for accepting, valuing and liquidating stock gifts Know what types, if any, of planned gifts your organization accepts and how you will value them for accounting and for recognition Cash Stock Real Property Nonprofit Funding Types Life Income Gifts Bequests Gifts-in- Kind wealthengine.com Page 26

Prioritizing Lead Gift Solicitation

Lead Gifts Indication of Charity Quality Signal a Greater Probability of Campaign Success Prestige and Social Comparison Provide Opportunity to Test Case For Support Create Momentum for Your Campaign wealthengine.com Page 28

Using Data to Prioritize Lead Gift Solicitation From Planning Phase (& Webinar One) Determine Lead Gift Size and Top Prospects Determine the Campaign Size Based on Lead Gift Size 1 Gift 1 Gift 2 Gifts 3 Gifts 3 Gifts 20% of Goal 10% Of Goal 5% Of Goal 2.5% Of Goal 1.5% Of Goal 10 Gifts 1% of Goal wealthengine.com Page 29

Using Data to Prioritize Lead Gift Solicitation 2. Determine lead gift amount and campaign goal Goal: $2,000,000 Number Prospect to Number of Prospects % of Goal Cumulative Cumulative Gift Type of Gifts Gift Ratio* Needed per Level % of Total Gift Levels Subtotal Total Lead Gift 1 05:1 5 20.00% 20% $400,000 $400,000 $400,000 Major Gift 1 04:1 4 10.00% 30% $200,000 $200,000 $600,000 Major Gift 2 04:1 8 5.00% 40% $100,000 $200,000 $800,000 Major Gift 3 04:1 12 2.50% 48% $50,000 $150,000 $950,000 Major Gift 3 04:1 12 1.50% 52% $30,000 $90,000 $1,040,000 Large Gifts 10 03:1 30 1.00% 62% $20,000 $200,000 $1,240,000 Large Gifts 12 03:1 36 0.75% 71% $15,000 $180,000 $1,420,000 Large Gifts 15 03:1 45 0.50% 79% $10,000 $150,000 $1,570,000 Large Gifts 20 03:1 60 0.25% 84% $5,000 $100,000 $1,670,000 Large Gifts 30 03:1 90 0.15% 88% $3,000 $90,000 $1,760,000 Large Gifts 40 03:1 120 0.10% 92% $2,000 $80,000 $1,840,000 Large Gifts 50 03:1 150 0.05% 95% $1,000 $50,000 $1,890,000 Many Gifts Many 03:1 Many Varies 100% Varies $110,000 $2,000,000 wealthengine.com Page 30

Using Data to Prioritize Lead Gift Solicitation How much can you raise? Name Total Giving Past 5 Years Largest Gift Last Gift Date Number of Gifts Constituent Type Estimated Giving Capacity Average % of Capacity Given Inclination to Support Campaign Forecast Leonard & Maria Cohen $75,000 75,000 9/6/11 1 Donor 2,000,000 19% H 580,000 William A. Joseph $350,000 250,000 9/30/11 29 Board 1,000,000 36% H 460,000 Jennifer Atkins $225,000 200,000 4/23/10 18 Donor 1,500,000 19% H 435,000 Jeanine Chantelle $87,000 50,000 11/30/11 12 Donor 500,000 19% H 145,000 Rena J. Lee $200,000 100,000 3/29/11 6 Donor 500,000 19% H 145,000 James Stewart $80,000 25,000 12/21/11 27 Board 250,000 36% H 115,000 Michael Kurtz $32,000 10,000 4/30/11 8 Donor 250,000 19% H 72,500 John & Mary Smith $90,000 50,000 2/23/10 12 Former Board 250,000 31% M 77,500 Richard Wilholm $64,000 50,000 3/13/09 4 Former Board 250,000 31% M 77,500 Frank Lin $50,000 10,000 11/14/11 9 Board 100,000 36% H 46,000 Tom Jeffers $25,000 25,000 12/30/11 1 Board 100,000 36% H 46,000 Samuel K. Jeffers $30,000 15,000 4/17/11 4 Member 250,000 15% M 37,500 Jim & Sandy Cline $16,000 10,000 2/24/11 3 Ticket Buyer 500,000 7% M 35,000 Lisa Woodrow $15,000 3,000 9/10/10 5 Former Board 50,000 31% M 15,500 Craig & Mandy Mellon $25,000 25,000 8/17/11 1 Member 100,000 15% M 15,000 Jared Czynski $10,000 10,000 7/28/10 1 Member 100,000 15% L 0 Juan Alvarez $12,000 5,000 10/19/09 4 Member 100,000 15% L 0 Nancy M. Gonzalez $500,000 500,000 8/12/08 1 Ticket Buyer 5,000,000 7% L 0 wealthengine.com Page 31

Using Data to Prioritize Lead Gift Solicitation Name Total Giving Past 5 Years Largest Gift Last Gift Date Number of Gifts Inclination James Stewart $80,000 25,000 12/21/11 27 H Leonard & Maria Cohen $75,000 75,000 9/6/11 1 H Rena J. Lee $200,000 100,000 3/29/11 6 H Samuel K. Jeffers $30,000 15,000 4/17/11 4 M John & Mary Smith $90,000 50,000 2/23/10 12 M Focus analysis on individual major donors they will make or break your campaign Who are your major donors? How recently have they given? Are they still involved? Evaluate their inclination to give using modeling, RFM, event attendance, connections, giving to other organizations and/or other behavioral characteristics Nancy M. Gonzalez $500,000 500,000 8/12/08 1 L wealthengine.com Page 32

Evaluating Inclination to Give Select the 4-6 factors or variables you think are most important 1. Total number of gifts >2 in past 5 years 2. Most recent gift within last 24 months 3. Volunteer (board member, development committee, special events committee, etc.) 4. Opened email in past 3 months 5. Attended an event in the past 12 months wealthengine.com Page 33

Evaluating Inclination to Give Pair rank each of the variables against each other, rank order and assign weight to each variable: Variable Pair Rank Rank Order Weight each variable A. Total Number of Gifts >2 in past 5 years B. Most recent gift within last 24 months C. Volunteer (board member, development committee, special events committee, etc.) D. Opened email in past 3 months E. Attended an event in the past 12 months 111 2 25 11 3 20 1111 1 30 5 10 1 4 15 wealthengine.com Page 34

Evaluating Inclination to Give 1. Take all combinations (10 in all) and rank each variable against every other variable in pairs 2. Put a hash mark next to winner in each pair 3. The variable with the most hash marks is ranked first, the one with the least hash marks is ranked last 4. Divide 100 points between the variables to determine the weight to give each variable. If Volunteer is twice as important (in the group opinion) as Attended Event, Volunteer gets twice as many points. 5. Now each constituent can be scored on a scale of 1-100 for affinity based on agreed upon criteria 6. Determine score values based on group consensus: Score 60-100=H, 20-69=M, 0-19=L wealthengine.com Page 35

Evaluating Likely Gift Amounts Name Estimated Giving Capacity Constituent Type Average % of Capacity Given Inclination to Support Campaign * Forecast Leonard & Maria Cohen 2,000,000 Donor 19% H 580,000 William A. Joseph 1,000,000 Board 36% H 460,000 Jennifer Atkins 1,500,000 Donor 19% H 435,000 Jeanine Chantelle 500,000 Donor 19% H 145,000 Rena J. Lee 500,000 Donor 19% H 145,000 James Stewart 250,000 Board 36% H 115,000 Michael Kurtz 250,000 Donor 19% H 72,500 John & Mary Smith 250,000 Former Board 31% M 77,500 Richard Wilholm 250,000 Former Board 31% M 77,500 Frank Lin 100,000 Board 36% H 46,000 Tom Jeffers 100,000 Board 36% H 46,000 Samuel K. Jeffers 250,000 Member 15% M 37,500 Jim & Sandy Cline 500,000 Ticket Buyer 7% M 35,000 Lisa Woodrow 50,000 Former Board 31% M 15,500 Craig & Mandy Mellon 100,000 Member 15% M 15,000 Jared Czynski 100,000 Member 15% L 0 Juan Alvarez 100,000 Member 15% L 0 Nancy M. Gonzalez 5,000,000 Ticket Buyer 7% L 0 Average % of Capacity Given: H=100%, M=100%, L=0% wealthengine.com Page 36

Evaluating Likely Gift Amounts Average % of Inclination Gift Gift Range Solicitation Forecast of Estimated Constituent Name Capacity to Support Amount Level to Close Campaign Giving Capacity Type Given Campaign * Forecast Minimum Ratio Receipts Leonard & Maria Cohen 2,000,000 Donor 19% H 580,000 $400K 3:1 $191,400 William A. Joseph 1,000,000 Board 36% H 460,000 $400K 3:1 $151,800 Jennifer Atkins 1,500,000 Donor 19% H 435,000 $400K 3:1 $143,550 Jeanine Chantelle 500,000 Donor 19% H 145,000 $100K 3:1 $47,850 Rena J. Lee 500,000 Donor 19% H 145,000 $100K 3:1 $47,850 James Stewart 250,000 Board 36% H 115,000 $100K 3:1 $37,950 Michael Kurtz 250,000 Donor 19% H 72,500 $50K 3:1 $23,925 John & Mary Smith 250,000 Former Board 31% M 77,500 $50K 3:1 $25,575 Richard Wilholm 250,000 Former Board 31% M 77,500 $50K 3:1 $25,575 Frank Lin 100,000 Board 36% H 46,000 $30K 4:1 $11,500 Tom Jeffers 100,000 Board 36% H 46,000 $30K 4:1 $11,500 Samuel K. Jeffers 250,000 Member 15% M 37,500 $30K 4:1 $9,375 Jim & Sandy Cline 500,000 Ticket Buyer 7% M 35,000 $30K 4:1 $8,750 Lisa Woodrow 50,000 Former Board 31% M 15,500 $15K 5:1 $3,100 Craig & Mandy Mellon 100,000 Member 15% M 15,000 $15K 5:1 $3,000 Jared Czynski 100,000 Member 15% L 0 Juan Alvarez 100,000 Member 15% L 0 Nancy M. Gonzalez 5,000,000 Ticket Buyer 7% L 0 Average % of Capacity Given: H=100%, M=100%, L=0% wealthengine.com Page 37

Evaluating Likely Gift Amounts Data Research: Builds ratings, identifies prospects, builds pyramid Board and Campaign Volunteers: add insight and provide feedback Relationships wealthengine.com Page 38

Questions

Contact Us 800.933.4446 www.wealthengine.com info@wealthengine.com wealthengine.com Page 40

Bibliography WealthEngine Webinar part One: Maximizing Your Capital Campaign: Setting the Stage for Success http://www.wealthengine.com/news-events/educational-webinars/maximizing-your-capital-campaign-setting-stage-success AFP Fundraising Effectiveness Project (FEP) Survey and Reports http://www.afpnet.org/audiences/reportsresearchdetail.cfm?itemnumber=3113 CASE Reporting Standards & Management Guidelines http://www.case.org/samples_research_and_tools/case_reporting_standards_and_management_guidelines.html Partnership for Philanthropic Planning Guidelines for Reporting and Counting Charitable Gifts http://www.pppnet.org/ethics/counting_gifts.html Marts & Lundy: Seed Money, Leadership Gifts, and Quiet Phases http://martsandlundy.com/reports-commentaries/ml-special-reports/2011/08/theory-practice-commentary-seed-money-leadership-gif The Bridgespan Group Why More Nonprofits Are Getting Bigger Finding Your Funding Model http://www.bridgespan.org/ wealthengine.com Page 41